Renting an Apartment

[sirgarnetwolseley]

After a spectacular availability increase in my city which turned it into a "renter's market", I am shopping for a new domicile. A friend suggested I aim for the 90% solution, whereby if I view an apartment that has at least 90% of the features I am looking for, I snap it up. My question is as follows; is budgeting 25% of your income for rent and utilities a reasonable yardstick? Is that 25% of your gross income, or net? I've found a super-awesome apartment but it is at the limit of my 25% budget and is a fair increase over what I am paying now, but is far nicer.

 

[PeterMetro]

I also live in NYC, and my rent + utilities comes out to 37.5% of my net income.

Bummer.

 

[nightowl6261a]

If you can stay at or under 25% after your net income, you are doing better than most I am sure, especially in a big city. In little ole ATL, a decent apt will run $1100 before utilities etc...so, cable, phone, gas, electric, water, figure another $400, which puts it at $1600. So, if you made just $4800 net a month, that would be a 1/3.


Since we are going here,

Right now I'm paying about 21% of gross income towards rent and necessary utilities (not phone or internet).

I figured mine out, never thought of it, but with phone and internet etc, mine comes to just under 20% gross...but I am in a special circumstance. But if anyone can rent and stay under 25%, I would think they are either making more than they are living on, or they need to consider buying and gaining ground for their money.

 

[Ambulance Chaser]

Standard rule used by lenders (in mortgage context, but applicable here too) is that housing expenses should not exceed 28% of your gross income. Â Total debt (including student loans, credit card bills, etc.) should not exceed 36% of your gross income.

 

[sirgarnetwolseley]

Reasonable for a city which isn't New York, London, or Tokyo.

Right now I'm paying about 21% of gross income towards rent and necessary utilities (not phone or internet). If my rent increased to 25% would this be excessively burdensome? I think not. I don't want the rent increase to cut into my clothing budget so I am thinking of cutting out a few other luxuries; my netflix equivalent can go. Do I really need internet access? I did away with cable television 3 years ago and have never looked back.

 

[sirgarnetwolseley]

Ambulance Chaser; thanks. Exactly what I wanted to hear. PeterMetro; gah. 37.5% of your net income? How do you eat? Wait, you are a student right?

 

[GQ Lawyer]

I figured it out and I am paying 11.5% of my gross income in Atlanta. I am moving to NYC in one month and have upped my percentage to 13.5%. However, this is based on my both wife and my gross income together (we are both attorneys working at big Atlanta and soon big NYC firms).

 

[Ambulance Chaser]

My mortgage and co-op fee constitute approximately 30% of my gross income. Â After taxes and contributions to my retirement account are factored in, the mortgage and co-op fee take up about 60% of my net income. Â

 

[PeterMetro]

PeterMetro; gah. 37.5% of your net income? How do you eat? Wait, you are a student right?

You know net income is generally smaller than gross income, right? I pay 24.8% of my gross income (only salary - not including investments). I live alone, so I'm not splitting any of those costs. I wish it were lower, but what can you do? If I cut back on anything, it'd be my clothing budget, eating out, and gambling losses (he pulled a f*&^ng 10 on the river, unbelievable).

 

[nightowl6261a]

I figured it out and I am paying 11.5% of my gross income in Atlanta.  I am moving to NYC in one month and have upped my percentage to 13.5%.  However, this is based on my both wife and my gross income together (we are both attorneys working at big Atlanta and soon big NYC firms).

I want to be a lawyer, damn that is sweet.

 

[PeterMetro]

I figured it out and I am paying 11.5% of my gross income in Atlanta.  I am moving to NYC in one month and have upped my percentage to 13.5%.  However, this is based on my both wife and my gross income together (we are both attorneys working at big Atlanta and soon big NYC firms).

Big Atlanta firms - Alston & Bird?

 

[topcatny]

We curently pay just under 20% of our gross for the mortgage and utilities including phone & internet.

I could afford to pay a higher percentage of my income, but I am glad I don't. This way we have more disposable income so we can enjoy life a little bit.

 

[craig]

I am in Atlanta and my rent and all utilities are about 15% of my gross. If you know where to look you can find some nice places in Atlanta very reasonably priced.

 

[sirgarnetwolseley]

You know net income is generally smaller than gross income, right?

Er, right. Did I mention I, "don't got my grade 10"? It makes sense now.

So I've submitted an application for the magic apartment. The landlord is a 7-foot tall viking, but seems nice. I provided my parole officer as a reference. Was this wise? I figured he could best explain the terms of the work-release program (just kidding).

 

[nightowl6261a]

I am in Atlanta and my rent and all utilities are about 15% of my gross.  If you know where to look you can find some nice places in Atlanta very reasonably priced.

I have been here my whole life, and you must be living someplace I have never heard of if it is reasonable and nice, because a 1 bedroom 850 sq ft flat in my area is avg price about $700.